The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2020
The Walt Disney Company (NYSE: DIS) reported a challenging fourth quarter for fiscal year 2020, with a diluted EPS loss of $0.39, down from a profit of $0.43 in the previous year. The pandemic severely impacted results, notably in the Parks segment, which saw a revenue decline of 61% to $2.6 billion. Total revenues fell 23% to $14.7 billion. However, direct-to-consumer services exceeded expectations, with Disney+ reaching over 73 million paid subscribers. The overall operating income suffered a loss of $580 million, compared to a gain of $1.25 billion in Q4 2019.
- Disney+ surpassing 73 million paid subscribers, exceeding expectations.
- Free cash flow increased to $938 million compared to $409 million in the prior year.
- Media Networks revenue grew by 11% to $7.2 billion for the quarter.
- Diluted EPS for the year dropped to a loss of $1.57 from a profit of $6.26 in the prior year.
- Parks, Experiences, and Products segment reported a significant operating loss of $1.1 billion.
- Total revenues decreased by 6% for the year, down to $65.4 billion.
BURBANK, Calif.--(BUSINESS WIRE)--The Walt Disney Company (NYSE: DIS) today reported earnings for its fourth quarter and fiscal year ended October 3, 2020. Diluted earnings per share (EPS) from continuing operations for the fourth quarter was a loss of
“Even with the disruption caused by COVID-19, we’ve been able to effectively manage our businesses while also taking bold, deliberate steps to position our company for greater long-term growth,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “The real bright spot has been our direct-to-consumer business, which is key to the future of our company, and on this anniversary of the launch of Disney+ we’re pleased to report that, as of the end of the fourth quarter, the service had more than 73 million paid subscribers – far surpassing our expectations in just its first year.”
The following table summarizes the fourth quarter and full year results for fiscal 2020 and 2019 (in millions, except per share amounts):
|
Quarter Ended |
|
|
|
Year Ended |
|
|
|||||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
|||||
Revenues |
$ |
14,707 |
|
$ |
19,118 |
|
(23) % |
|
$ |
65,388 |
|
$ |
69,607 |
|
(6) % |
|
Income (loss) from continuing operations before income taxes |
$ |
(580) |
|
$ |
1,247 |
|
nm |
|
$ |
(1,743) |
|
$ |
13,923 |
|
nm |
|
Total segment operating income(1) |
$ |
606 |
|
$ |
3,425 |
|
(82) % |
|
$ |
8,108 |
|
$ |
14,847 |
|
(45) % |
|
Net income (loss) from continuing operations(2) |
$ |
(710) |
|
$ |
777 |
|
nm |
|
$ |
(2,832) |
|
$ |
10,425 |
|
nm |
|
Diluted EPS from continuing operations(2) |
$ |
(0.39) |
|
$ |
0.43 |
|
nm |
|
$ |
(1.57) |
|
$ |
6.26 |
|
nm |
|
Diluted EPS excluding certain items affecting comparability(1) |
$ |
(0.20) |
|
$ |
1.07 |
|
nm |
|
$ |
2.02 |
|
$ |
5.76 |
|
(65) % |
|
Cash provided by continuing operations |
$ |
1,667 |
|
$ |
1,718 |
|
(3) % |
|
$ |
7,616 |
|
$ |
5,984 |
|
27 % |
|
Free cash flow(1) |
$ |
938 |
|
$ |
409 |
|
>100 % |
|
$ |
3,594 |
|
$ |
1,108 |
|
>100 % |
|
(1) |
EPS excluding certain items affecting comparability, total segment operating income and free cash flow are non-GAAP financial measures. The comparable GAAP measures are diluted EPS from continuing operations, income from continuing operations before income taxes, and cash provided by continuing operations, respectively. See the discussion on page 2 and on pages 11 through 14. |
||
(2) |
Reflects amounts attributable to shareholders of The Walt Disney Company, i.e. after deduction of income attributable to noncontrolling interests. |
Results for fiscal year 2020 included TFCF Corporation (TFCF) and Hulu LLC (Hulu) for the entire year, whereas results in the prior year included TFCF and Hulu for the period March 20, 2019 through September 28, 2019. The impact of the approximately six month non-comparable period is referred to as the consolidation of TFCF and Hulu. In addition, fiscal 2020 results for the full year and fourth quarter include one additional week of operations. The Company’s fiscal year end is on the Saturday closest to September 30 and consists of fifty-two weeks with the exception that approximately every six years, we have a fifty-three week year. Fiscal 2020 is a fifty-three week year, which began on September 29, 2019 and ended on October 3, 2020. We estimate that the additional week resulted in a benefit to pre-tax income of approximately
SEGMENT RESULTS
The Company evaluates the performance of its operating segments based on segment operating income, and management uses total segment operating income as a measure of the performance of operating businesses separate from non-operating factors. The Company believes that information about total segment operating income assists investors by allowing them to evaluate changes in the operating results of the Company’s portfolio of businesses separate from non-operational factors that affect net income, thus providing separate insight into both operations and the other factors that affect reported results.
The following is a reconciliation of income (loss) from continuing operations before income taxes to total segment operating income (in millions):
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||||||||
Income (loss) from continuing operations before income taxes |
$ |
(580) |
|
|
$ |
1,247 |
|
|
nm |
|
$ |
(1,743) |
|
|
$ |
13,923 |
|
|
nm |
Add/(subtract): |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate and unallocated shared expenses |
213 |
|
|
309 |
|
|
31 % |
|
817 |
|
|
987 |
|
|
17 % |
||||
Restructuring and impairment charges |
393 |
|
|
314 |
|
|
(25) % |
|
5,735 |
|
|
1,183 |
|
|
>(100) % |
||||
Other (income) expense, net |
(656) |
|
|
483 |
|
|
nm |
|
(1,038) |
|
|
(4,357) |
|
|
(76) % |
||||
Interest expense, net |
496 |
|
|
361 |
|
|
(37) % |
|
1,491 |
|
|
978 |
|
|
(52) % |
||||
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs |
740 |
|
|
711 |
|
|
(4) % |
|
2,846 |
|
|
1,595 |
|
|
(78) % |
||||
Impairment of equity investments(1) |
— |
|
|
— |
|
|
— % |
|
— |
|
|
538 |
|
|
100 % |
||||
Total Segment Operating Income |
$ |
606 |
|
|
$ |
3,425 |
|
|
(82) % |
|
$ |
8,108 |
|
|
$ |
14,847 |
|
|
(45) % |
(1) |
The prior year reflects an impairment of Vice Group Holding Inc. and the impairment of an investment in a cable channel at A+E Television Networks. |
COVID-19 and measures to prevent its spread impacted our segments in a number of ways, most significantly at Parks, Experiences and Products where our theme parks were closed or operating at significantly reduced capacity for a significant portion of the year, cruise ship sailings and guided tours were suspended since late in the second quarter and retail stores were closed for a significant portion of the year. We also had an adverse impact on our merchandise licensing business. In addition, at Studio Entertainment we have delayed, or in some cases, shortened or cancelled, theatrical releases, and stage play performances have been suspended since late in the second quarter. We also had adverse impacts on advertising sales at Media Networks and Direct-to-Consumer & International. Since March 2020, we have experienced significant disruptions in the production and availability of content, including the shift of key live sports programming from our third quarter to the fourth quarter and into fiscal 2021 as well as the suspension of production of most film and television content since late in the second quarter, although some film and television production resumed in the fourth quarter. As our businesses reopen we have incurred, and will continue to incur, additional costs to address government regulations and implement safety measures for our employees, talent and guests. The timing, duration and extent of these costs will depend on the timing and scope of the resumption of our operations. We currently estimate these costs may total approximately
The most significant adverse impact in the current quarter and year from COVID-19 was approximately
The following table summarizes the fourth quarter and full year segment revenue and segment operating income for fiscal 2020 and 2019 (in millions):
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Media Networks |
$ |
7,213 |
|
|
$ |
6,510 |
|
|
11 % |
|
$ |
28,393 |
|
|
$ |
24,827 |
|
|
14 % |
Parks, Experiences and Products |
2,580 |
|
|
6,655 |
|
|
(61) % |
|
16,502 |
|
|
26,225 |
|
|
(37) % |
||||
Studio Entertainment |
1,595 |
|
|
3,310 |
|
|
(52) % |
|
9,636 |
|
|
11,127 |
|
|
(13) % |
||||
Direct-to-Consumer & International |
4,853 |
|
|
3,446 |
|
|
41 % |
|
16,967 |
|
|
9,386 |
|
|
81 % |
||||
Eliminations |
(1,534) |
|
|
(803) |
|
|
(91) % |
|
(6,110) |
|
|
(1,958) |
|
|
>(100) % |
||||
Total Revenues |
$ |
14,707 |
|
|
$ |
19,118 |
|
|
(23) % |
|
$ |
65,388 |
|
|
$ |
69,607 |
|
|
(6) % |
Segment operating income: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Media Networks |
$ |
1,864 |
|
|
$ |
1,783 |
|
|
5 % |
|
$ |
9,022 |
|
|
$ |
7,479 |
|
|
21 % |
Parks, Experiences and Products |
(1,098) |
|
|
1,381 |
|
|
nm |
|
(81) |
|
|
6,758 |
|
|
nm |
||||
Studio Entertainment |
419 |
|
|
1,079 |
|
|
(61) % |
|
2,501 |
|
|
2,686 |
|
|
(7) % |
||||
Direct-to-Consumer & International |
(580) |
|
|
(751) |
|
|
23 % |
|
(2,806) |
|
|
(1,835) |
|
|
(53) % |
||||
Eliminations |
1 |
|
|
(67) |
|
|
nm |
|
(528) |
|
|
(241) |
|
|
>(100) % |
||||
Total Segment Operating Income |
$ |
606 |
|
|
$ |
3,425 |
|
|
(82) % |
|
$ |
8,108 |
|
|
$ |
14,847 |
|
|
(45) % |
DISCUSSION OF FULL YEAR SEGMENT RESULTS
Segment operating income decreased at Parks, Experiences and Products, Direct-to-Consumer & International and Studio Entertainment, partially offset by an increase at Media Networks. The decrease at Parks, Entertainment and Products was due to the impacts of COVID-19. The decrease at Direct-to-Consumer & International was due to costs associated with the rollout of Disney+. Lower segment operating income at Studio Entertainment was due to lower theatrical distribution results. Growth at Media Networks was due to affiliate revenue growth, lower programming and production costs and the consolidation of TFCF, partially offset by a decrease in advertising revenue. Segment eliminations of operating income increased due to sales of Media Networks and Studio content to Hulu and Disney+.
DISCUSSION OF FOURTH QUARTER SEGMENT RESULTS
Media Networks
Media Networks revenues for the quarter increased
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||
Cable Networks |
$ |
4,721 |
|
$ |
4,243 |
|
11 % |
|
$ |
17,966 |
|
$ |
16,486 |
|
9 % |
Broadcasting |
2,492 |
|
2,267 |
|
10 % |
|
10,427 |
|
8,341 |
|
25 % |
||||
|
$ |
7,213 |
|
$ |
6,510 |
|
11 % |
|
$ |
28,393 |
|
$ |
24,827 |
|
14 % |
Segment operating income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Cable Networks |
$ |
1,163 |
|
$ |
1,256 |
|
(7) % |
|
$ |
6,283 |
|
$ |
5,425 |
|
16 % |
Broadcasting |
553 |
|
377 |
|
47 % |
|
2,002 |
|
1,351 |
|
48 % |
||||
Equity in the income of investees |
148 |
|
150 |
|
(1) % |
|
737 |
|
703 |
|
5 % |
||||
|
$ |
1,864 |
|
$ |
1,783 |
|
5 % |
|
$ |
9,022 |
|
$ |
7,479 |
|
21 % |
Cable Networks
Cable Networks revenues for the quarter increased
The decrease at ESPN was due to higher programming and production costs, partially offset by affiliate and advertising revenue growth. The increase in programming and production costs was due to the recognition of rights costs related to NBA and MLB programming rescheduled from the third quarter into the current quarter, partially offset by the deferral of rights costs related to the shift of college football games to fiscal 2021, both as a result of COVID-19. Affiliate revenue growth was due to the benefit of an additional week in the current quarter and an increase in contractual rates. These increases were partially offset by a decrease in subscribers, which was net of a benefit from a full quarter of the ACC Network, which launched in August 2019. The increase in advertising revenue was driven by the benefit of an additional week in the current quarter and the shift of NBA and MLB programming into the current quarter as a result of COVID-19.
Higher FX Networks results were due to a decrease in programming and production costs, driven by fewer hours of original programming, and lower marketing costs. The increase at the Domestic Disney Channels was due to the sale of library titles to Disney+.
Broadcasting
Broadcasting revenues for the quarter increased
The increase in affiliate revenue was due to higher rates and the benefit of an additional week in the current quarter. The decrease in network programming and production costs was due to production shutdowns, cancellations and deferrals of programming, the shift of college football games to later quarters and a delay in airing new season premieres which all reflected the impact of COVID-19. These programming and production cost decreases were partially offset by higher program cost write-downs and the impact of an additional week in the current quarter.
Advertising revenues were comparable to the prior-year quarter as lower average network viewership was offset by the benefit of an additional week in the current quarter, higher network rates and an increase in political advertising at the owned television stations.
At the beginning of fiscal 2020, the Company adopted new accounting guidance, which generally results in lower amortization of capitalized episodic television costs during network airings for shows that we also expect to utilize on our direct-to-consumer services. Compared to the previous accounting, programming and production expense will generally be lower in the first half of the fiscal year and higher in the second half of the fiscal year as the capitalized costs are amortized.
Parks, Experiences and Products
Parks, Experiences and Products revenues for the quarter decreased
As a result of COVID-19, Disneyland Resort and our cruise line business were closed for all of the current quarter. Shanghai Disney Resort re-opened in May, while Walt Disney World Resort and Disneyland Paris re-opened in mid-July and Hong Kong Disneyland Resort was open for about two weeks at the beginning of the quarter and about one week at the end of the quarter. All of our re-opened parks and resorts operated at significantly reduced capacities during the current quarter.
We estimate the total net adverse impact of COVID-19 on segment operating income in the quarter was approximately
Studio Entertainment
Studio Entertainment revenues for the quarter decreased
Theatrical distribution was lower as there were generally no significant worldwide theatrical releases in the quarter compared to The Lion King and Toy Story 4, which were in release in the prior-year quarter. The decrease was partially offset by lower marketing expense for future releases. The current quarter was negatively impacted by COVID-19 as many theaters throughout the world were either closed or operating at reduced capacity.
The decrease in home entertainment results was due to lower unit sales, partially offset by lower marketing costs. The prior-year quarter reflected the performance of Avengers: Endgame, Aladdin and Captain Marvel compared to no comparable titles in the current quarter.
Direct-to-Consumer & International
Direct-to-Consumer & International revenues for the quarter increased
The improvement at Hulu was due to subscriber growth and increased advertising revenues driven by higher impressions, partially offset by an increase in programming and production costs due to higher subscriber-based fees for programming the live television service.
Higher results at ESPN+ were driven by subscriber growth and higher income from Ultimate Fighting Championship pay-per-view events.
The decrease at our international channels was due to lower affiliate and advertising revenues, partially offset by a decrease in costs driven by lower general and administrative expenses and bad debt recoveries.
The following table presents the number of paid subscribers(1) (in millions) for Disney+, ESPN+ and Hulu as of:
|
October 3,
|
|
September 28,
|
|
Change |
||
Disney+(3) |
73.7 |
|
|
— |
|
|
nm |
ESPN+ |
10.3 |
|
|
3.5 |
|
|
>100 % |
Hulu |
|
|
|
|
|
||
SVOD Only |
32.5 |
|
|
25.6 |
|
|
27 % |
Live TV + SVOD |
4.1 |
|
|
2.9 |
|
|
41 % |
Total Hulu |
36.6 |
|
|
28.5 |
|
|
28 % |
The following table presents the average monthly revenue per paid subscriber(2) for the quarter ended:
|
October 3,
|
|
September 28,
|
|
Change |
||
Disney+(3) (4) |
$ |
4.52 |
|
$ |
— |
|
nm |
ESPN+(5) |
$ |
4.54 |
|
$ |
5.15 |
|
(12) % |
Hulu |
|
|
|
|
|
||
SVOD Only |
$ |
12.59 |
|
$ |
12.67 |
|
(1) % |
Live TV + SVOD |
$ |
71.90 |
|
$ |
58.82 |
|
22 % |
(1) |
A subscriber for which we recognized subscription revenue. A subscriber ceases to be a paid subscriber as of their effective cancellation date or as a result of a failed payment method. A subscription bundle is considered a paid subscriber for each service included in the bundle. Subscribers include those who receive the service through wholesale arrangements in which we receive a fee for the distribution of Disney+ to each subscriber to an existing content distribution tier. When we aggregate the total number of paid subscribers across our direct-to-consumer services, whether acquired individually, through a wholesale arrangement or via the bundle, we refer to them as paid subscriptions. |
||
(2) |
Revenue per paid subscriber is calculated based upon the average of the monthly average paid subscribers for each month in the period. The monthly average paid subscribers is calculated as the sum of the beginning of the month and end of the month paid subscriber count, divided by two. Disney+ average monthly revenue per paid subscriber is calculated using a daily average of paid subscribers for the period beginning at the later of the first day of the quarter or launch date, and ending on the last day of the quarter. The average revenue per subscriber is net of discounts provided to both wholesale and bundled subscribers, annual subscriptions and other limited term promotional offers. The bundled discount is allocated to each service based on the relative retail price of each service on a standalone basis. In general, wholesale arrangements have a lower average monthly revenue per paid subscriber than subscribers that we acquire directly or through third party platforms like Apple. |
||
(3) |
Disney+ Hotstar launched on April 3, 2020 and September 5, 2020 in India and Indonesia, respectively, (as a conversion of the preexisting Hotstar service) and is included in the number of paid subscribers and average monthly revenue per paid subscriber. The average monthly revenue per paid subscriber for Disney+ Hotstar in India and Indonesia is significantly lower than the average monthly revenue per paid subscriber in North America and Europe. |
||
(4) |
Excludes Disney+ Premier Access revenue. |
||
(5) |
Excludes Pay-Per-View revenue. |
The average monthly revenue per paid subscriber for ESPN+ decreased from
The average monthly revenue per paid subscriber for the Hulu SVOD Only service decreased from
Eliminations
Intersegment content transactions are as follows:
|
Quarter Ended |
|
|
||||
(in millions) |
October 3,
|
|
September 28,
|
|
Change |
||
Revenues |
|
|
|
|
|
||
Studio Entertainment: |
|
|
|
|
|
||
Content transactions with Media Networks |
$ |
(41) |
|
$ |
(31) |
|
(32) % |
Content transactions with Direct-to-Consumer & International |
(456) |
|
(90) |
|
>(100) % |
||
Media Networks: |
|
|
|
|
|
||
Content transactions with Direct-to-Consumer & International |
(1,037) |
|
(682) |
|
(52) % |
||
Total |
$ |
(1,534) |
|
$ |
(803) |
|
(91) % |
|
|
|
|
|
|
||
Operating income |
|
|
|
|
|
||
Studio Entertainment: |
|
|
|
|
|
||
Content transactions with Media Networks |
$ |
11 |
|
$ |
(8) |
|
nm |
Content transactions with Direct-to-Consumer & International |
88 |
|
(1) |
|
nm |
||
Media Networks: |
|
|
|
|
|
||
Content transactions with Direct-to-Consumer & International |
(98) |
|
(58) |
|
(69) % |
||
Total |
$ |
1 |
|
$ |
(67) |
|
nm |
Revenue eliminations increased from
OTHER FINANCIAL INFORMATION
Corporate and Unallocated Shared Expenses
Corporate and unallocated shared expenses decreased
Restructuring and Impairment Charges
During the current and prior-year quarters, the Company recorded charges totaling
Other income (expense), net
Other income (expense), net was as follows (in millions):
|
Quarter Ended |
|
|
||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||||
DraftKings gain |
$ |
591 |
|
|
$ |
— |
|
|
nm |
Gain on sale of an investment |
65 |
|
|
— |
|
|
nm |
||
Charge for the extinguishment of a portion of the debt originally assumed in the TFCF acquisition |
— |
|
|
(511) |
|
|
100 % |
||
Gain recognized in connection with the acquisition of TFCF |
— |
|
|
28 |
|
|
(100) % |
||
Other income (expense), net |
$ |
656 |
|
|
$ |
(483) |
|
|
nm |
In the current quarter, the Company recognized a non-cash gain to adjust its investment in DraftKings, Inc. to fair value (DraftKings gain). In the prior-year quarter, the Company recognized a loss on the extinguishment of a portion of the debt originally assumed in the TFCF acquisition.
Interest Expense, net
Interest expense, net was as follows (in millions):
|
Quarter Ended |
|
|
||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||||
Interest expense |
$ |
(464) |
|
|
$ |
(413) |
|
|
(12) % |
Interest, investment income and other |
(32) |
|
|
52 |
|
|
nm |
||
Interest expense, net |
$ |
(496) |
|
|
$ |
(361) |
|
|
(37) % |
The increase in interest expense was due to higher average debt balances, the impact of an additional week in the current quarter and lower capitalized interest, partially offset by lower average interest rates.
The decrease in interest income, investment income and other was due to higher investment impairments and a lower benefit related to pension and postretirement benefit costs, other than service costs.
Equity in the Income of Investees
Equity in the income of investees was as follows (in millions):
|
Quarter Ended |
|
|
||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||||
Amounts included in segment results: |
|
|
|
|
|
||||
Media Networks |
$ |
148 |
|
|
$ |
150 |
|
|
(1) % |
Parks, Experiences and Products |
(4) |
|
|
(1) |
|
|
>(100) % |
||
Studio Entertainment |
(1) |
|
|
— |
|
|
nm |
||
Direct-to-Consumer & International |
(34) |
|
|
(18) |
|
|
(89) % |
||
Amortization of TFCF intangible assets related to equity investees |
(3) |
|
|
— |
|
|
nm |
||
Equity in the income of investees |
$ |
106 |
|
|
$ |
131 |
|
|
(19) % |
Equity in the income of investees decreased
Income Taxes
The effective income tax rate was as follows:
|
Quarter Ended |
|
|
|
|||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||
Effective income tax rate - continuing operations |
(8.4)% |
|
|
|
35.7 |
|
ppt |
The effective income tax rate was negative in the current quarter due to foreign losses for which we are unable to recognize a tax benefit.
Noncontrolling Interests
Net income attributable to noncontrolling interests was as follows (in millions):
|
Quarter Ended |
|
|
||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||
Net income from continuing operations attributable to noncontrolling interests |
$ |
(81) |
|
$ |
(129) |
|
37 % |
The decrease in net income from continuing operations attributable to noncontrolling interests was due to lower results at ESPN, Shanghai Disney Resort and Hong Kong Disneyland Resort, partially offset by higher results at our DTC Sports business.
Net income attributable to noncontrolling interests is determined on income after royalties and management fees, financing costs and income taxes, as applicable.
FULL YEAR CASH FLOW STATEMENT INFORMATION
Cash Flow
Cash provided by operations and free cash flow were as follows (in millions):
|
Year Ended |
|
|
||||||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
||||||||
Cash provided by operations |
$ |
7,616 |
|
|
|
$ |
5,984 |
|
|
|
$ |
1,632 |
|
Investments in parks, resorts and other property |
(4,022 |
) |
|
|
(4,876 |
) |
|
|
854 |
|
|||
Free cash flow(1) |
$ |
3,594 |
|
|
|
$ |
1,108 |
|
|
|
$ |
2,486 |
|
(1) |
Free cash flow is not a financial measure defined by GAAP. See the discussion on pages 11 through 14. |
Cash provided by operations for fiscal 2020 increased by
Capital Expenditures and Depreciation Expense
Investments in parks, resorts and other property were as follows (in millions):
|
Year Ended |
||||
|
Oct. 3,
|
|
Sept. 28,
|
||
Media Networks |
|
|
|
||
Cable Networks |
$ |
61 |
|
$ |
93 |
Broadcasting |
51 |
|
81 |
||
Total Media Networks |
112 |
|
174 |
||
Parks, Experiences and Products |
|
|
|
||
Domestic |
2,145 |
|
3,294 |
||
International |
759 |
|
852 |
||
Total Parks, Experiences and Products |
2,904 |
|
4,146 |
||
Studio Entertainment |
77 |
|
88 |
||
Direct-to-Consumer & International |
594 |
|
258 |
||
Corporate |
335 |
|
210 |
||
Total investments in parks, resorts and other property |
$ |
4,022 |
|
$ |
4,876 |
Capital expenditures decreased from
Depreciation expense was as follows (in millions):
|
Year Ended |
||||
|
Oct. 3,
|
|
Sept. 28,
|
||
Media Networks |
|
|
|
||
Cable Networks |
$ |
120 |
|
$ |
107 |
Broadcasting |
83 |
|
84 |
||
Total Media Networks |
203 |
|
191 |
||
Parks, Experiences and Products |
|
|
|
||
Domestic |
1,634 |
|
1,474 |
||
International |
694 |
|
724 |
||
Total Parks, Experiences and Products |
2,328 |
|
2,198 |
||
Studio Entertainment |
87 |
|
74 |
||
Direct-to-Consumer & International |
348 |
|
214 |
||
Corporate |
174 |
|
167 |
||
Total depreciation expense |
$ |
3,140 |
|
$ |
2,844 |
NON-GAAP FINANCIAL MEASURES
This earnings release presents free cash flow, diluted EPS excluding the impact of certain items affecting comparability, and total segment operating income, all of which are important financial measures for the Company, but are not financial measures defined by GAAP.
These measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as alternative measures of operating cash flow, diluted EPS or income from continuing operations before income taxes as determined in accordance with GAAP. Free cash flow, diluted EPS excluding certain items affecting comparability and total segment operating income as we have calculated them may not be comparable to similarly titled measures reported by other companies. See further discussion of total segment operating income on page 2.
Free cash flow – The Company uses free cash flow (cash provided by operations less investments in parks, resorts and other property), among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than capital expenditures. Management believes that information about free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments and pay dividends or repurchase shares.
The following table presents a summary of the Company’s consolidated cash flows (in millions):
|
Quarter Ended |
|
Year Ended |
||||||||||||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Oct. 3,
|
|
Sept. 28,
|
||||||||||||
Cash provided by operations - continuing operations |
$ |
1,667 |
|
|
|
$ |
1,718 |
|
|
|
$ |
7,616 |
|
|
|
$ |
5,984 |
|
|
Cash used in investing activities - continuing operations |
(530 |
) |
|
|
(1,311 |
) |
|
|
(3,850 |
) |
|
|
(15,096 |
) |
|
||||
Cash provided by (used in) financing activities - continuing operations |
(6,439 |
) |
|
|
(12,997 |
) |
|
|
8,480 |
|
|
|
(464 |
) |
|
||||
Cash provided by operations - discontinued operations |
— |
|
|
|
302 |
|
|
|
2 |
|
|
|
622 |
|
|
||||
Cash provided by investing activities - discontinued operations |
15 |
|
|
|
10,978 |
|
|
|
213 |
|
|
|
10,978 |
|
|
||||
Cash used in financing activities - discontinued operations |
— |
|
|
|
(447 |
) |
|
|
— |
|
|
|
(626 |
) |
|
||||
Impact of exchange rates on cash, cash equivalents and restricted cash |
87 |
|
|
|
(145 |
) |
|
|
38 |
|
|
|
(98 |
) |
|
||||
Change in cash, cash equivalents and restricted cash |
(5,200 |
) |
|
|
(1,902 |
) |
|
|
12,499 |
|
|
|
1,300 |
|
|
||||
Cash, cash equivalents and restricted cash, beginning of period |
23,154 |
|
|
|
7,357 |
|
|
|
5,455 |
|
|
|
4,155 |
|
|
||||
Cash, cash equivalents and restricted cash, end of period |
$ |
17,954 |
|
|
|
$ |
5,455 |
|
|
|
$ |
17,954 |
|
|
|
$ |
5,455 |
|
|
The following table presents a reconciliation of the Company’s consolidated cash provided by operations to free cash flow (in millions):
|
Quarter Ended |
|
|
|
Year Ended |
|
|
|||||||||||||||||||||
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
|
Oct. 3,
|
|
Sept. 28,
|
|
Change |
|||||||||||||||||
Cash provided by operations - continuing operations |
$ |
1,667 |
|
|
|
$ |
1,718 |
|
|
|
$ |
(51 |
) |
|
|
$ |
7,616 |
|
|
|
$ |
5,984 |
|
|
|
$ |
1,632 |
|
Investments in parks, resorts and other property |
(729 |
) |
|
|
(1,309 |
) |
|
|
580 |
|
|
|
(4,022 |
) |
|
|
(4,876 |
) |
|
|
854 |
|
||||||
Free cash flow |
$ |
938 |
|
|
|
$ |
409 |
|
|
|
$ |
529 |
|
|
|
$ |
3,594 |
|
|
|
$ |
1,108 |
|
|
|
$ |
2,486 |
|
Diluted EPS excluding certain items affecting comparability – The Company uses diluted EPS excluding certain items to evaluate the performance of the Company’s operations exclusive of certain items affecting comparability of results from period to period. The Company believes that information about diluted EPS exclusive of these items is useful to investors, particularly where the impact of the excluded items is significant in relation to reported earnings, because the measure allows for comparability between periods of the operating performance of the Company’s business and allows investors to evaluate the impact of these items separately from the impact of the operations of the business.
The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items affecting comparability for the fourth quarter:
(in millions except EPS) |
Pre-Tax Income/ Loss |
|
Tax Benefit/ Expense(1) |
|
After-Tax Income/ Loss(2) |
|
Diluted EPS(3) |
|
Change vs.
|
||||||||||||
Quarter Ended October 3, 2020 |
|
|
|
|
|
|
|
|
|
||||||||||||
As reported |
$ |
(580 |
) |
|
|
$ |
(49 |
) |
|
|
$ |
(629 |
) |
|
|
$ |
(0.39 |
) |
|
|
n/m |
Exclude: |
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(4) |
740 |
|
|
|
(173 |
) |
|
|
567 |
|
|
|
0.30 |
|
|
|
|
||||
Restructuring and impairment charges(5) |
393 |
|
|
|
(94 |
) |
|
|
299 |
|
|
|
0.17 |
|
|
|
|
||||
Other income, net(6) |
(656 |
) |
|
|
153 |
|
|
|
(503 |
) |
|
|
(0.28 |
) |
|
|
|
||||
Excluding certain items affecting comparability |
$ |
(103 |
) |
|
|
$ |
(163 |
) |
|
|
$ |
(266 |
) |
|
|
$ |
(0.20 |
) |
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Quarter Ended September 28, 2019 |
|
|
|
|
|
|
|
|
|
||||||||||||
As reported |
$ |
1,247 |
|
|
|
$ |
(341 |
) |
|
|
$ |
906 |
|
|
|
$ |
0.43 |
|
|
|
|
Exclude: |
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(4) |
711 |
|
|
|
(164 |
) |
|
|
547 |
|
|
|
0.30 |
|
|
|
|
||||
Other income, net(6) |
483 |
|
|
|
(112 |
) |
|
|
371 |
|
|
|
0.21 |
|
|
|
|
||||
Restructuring and impairment charges(5) |
314 |
|
|
|
(73 |
) |
|
|
241 |
|
|
|
0.13 |
|
|
|
|
||||
Excluding certain items affecting comparability |
$ |
2,755 |
|
|
|
$ |
(690 |
) |
|
|
$ |
2,065 |
|
|
|
$ |
1.07 |
|
|
|
|
(1) |
Tax benefit/expense is determined using the tax rate applicable to the individual item. |
||
(2) |
Before noncontrolling interest share. |
||
(3) |
Net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding. |
||
(4) |
For the current quarter, intangible asset amortization was |
||
(5) |
Charges in the current quarter were due to severance costs in connection with the reduction-in-force at our Parks, Experiences and Products segment and the integration of TFCF. Charges in the prior-year quarter included severance costs related to the acquisition and integration of TFCF. |
||
(6) |
Other income, net for the current quarter included a non-cash gain to adjust the Company’s investment in DraftKings, Inc. to fair value (DraftKings gain) ( |
The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items affecting comparability for the year:
(in millions except EPS) |
Pre-Tax Income/ Loss |
|
Tax Benefit/ Expense(1) |
|
After-Tax Income/ Loss(2) |
|
Diluted EPS(3) |
|
Change vs.
|
|||||||||||
Year Ended October 3, 2020: |
|
|
|
|
|
|
|
|
|
|||||||||||
As reported |
$ |
(1,743 |
) |
|
|
$ |
(699 |
) |
|
|
$ |
(2,442 |
) |
|
|
$ |
(1.57 |
) |
|
n/m |
Exclude: |
|
|
|
|
|
|
|
|
|
|||||||||||
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(4) |
2,846 |
|
|
|
(662 |
) |
|
|
2,184 |
|
|
|
1.17 |
|
|
|
||||
Restructuring and impairment charges(5) |
5,735 |
|
|
|
(571 |
) |
|
|
5,164 |
|
|
|
2.86 |
|
|
|
||||
Other income, net(6) |
(1,038 |
) |
|
|
242 |
|
|
|
(796 |
) |
|
|
(0.44 |
) |
|
|
||||
Excluding certain items affecting comparability |
$ |
5,800 |
|
|
|
$ |
(1,690 |
) |
|
|
$ |
4,110 |
|
|
|
$ |
2.02 |
|
|
(65) % |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year Ended September 28, 2019: |
|
|
|
|
|
|
|
|
|
|||||||||||
As reported |
$ |
13,923 |
|
|
|
$ |
(3,026 |
) |
|
|
$ |
10,897 |
|
|
|
$ |
6.26 |
|
|
|
Exclude: |
|
|
|
|
|
|
|
|
|
|||||||||||
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(4) |
1,595 |
|
|
|
(355 |
) |
|
|
1,240 |
|
|
|
0.74 |
|
|
|
||||
Restructuring and impairment charges(5) |
1,183 |
|
|
|
(273 |
) |
|
|
910 |
|
|
|
0.55 |
|
|
|
||||
Impairment of equity investments(7) |
538 |
|
|
|
(123 |
) |
|
|
415 |
|
|
|
0.25 |
|
|
|
||||
Other income, net(6) |
(4,357 |
) |
|
|
1,002 |
|
|
|
(3,355 |
) |
|
|
(2.01 |
) |
|
|
||||
One-time impact from the Tax Act(8) |
— |
|
|
|
(34 |
) |
|
|
(34 |
) |
|
|
(0.02 |
) |
|
|
||||
Excluding certain items affecting comparability |
$ |
12,882 |
|
|
|
$ |
(2,809 |
) |
|
|
$ |
10,073 |
|
|
|
$ |
5.76 |
|
|
|
(1) |
Tax benefit/expense is determined using the tax rate applicable to the individual item. |
||
(2) |
Before noncontrolling interest share. |
||
(3) |
Net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding. |
||
(4) |
For fiscal 2020, intangible asset amortization was |
||
(5) |
Charges in fiscal 2020 were due to goodwill and intangible asset impairments ( |
||
(6) |
Other income, net for fiscal 2020 included the DraftKings gain ( |
||
(7) |
Includes the impairments of Vice Group Holding Inc. and of an investment in a cable channel at A+E Television Networks ( |
||
(8) |
Reflects a benefit from the U.S. federal income tax legislation enacted in fiscal 2018 (Tax Act). |
CONFERENCE CALL INFORMATION
In conjunction with this release, The Walt Disney Company will host a conference call today, November 12, 2020, at 4:30 PM EST/1:30 PM PST via a live Webcast. To access the Webcast go to www.disney.com/investors. The discussion will be archived.
FORWARD-LOOKING STATEMENTS
Certain statements and information in this communication may be deemed to be “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995, including statements such as business positioning, expected growth, the future of our businesses or Company and other statements that are not historical in nature. These statements are made on the basis of management’s views and assumptions regarding future events and business performance as of the time the statements are made. Management does not undertake any obligation to update these statements.
Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, integration initiatives and timing of synergy realization, new or expanded business lines or cessation of certain operations) or other business decisions, as well as from developments beyond the Company’s control, including:
- changes in domestic and global economic conditions, competitive conditions and consumer preferences;
- adverse weather conditions or natural disasters;
- health concerns;
- international, regulatory, political, or military developments;
- technological developments; and
- labor markets and activities;
each such risk includes the current and future impacts of, and is amplified by, COVID-19 and related mitigation efforts.
Such developments may further affect entertainment, travel and leisure businesses generally and may, among other things, affect (or further affect, as applicable):
- the performance of the Company’s theatrical and home entertainment releases;
- the advertising market for broadcast and cable television programming;
- demand for our products and services;
- construction;
- expenses of providing medical and pension benefits;
- income tax expense;
- performance of some or all company businesses either directly or through their impact on those who distribute our products; and
- achievement of anticipated benefits of the TFCF transaction.
Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended September 28, 2019 under Item 1A, “Risk Factors,” Item 7, “Management’s Discussion and Analysis,” Item 1, “Business,” and subsequent reports, including, among others, quarterly reports on Form 10-Q.
THE WALT DISNEY COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited; in millions, except per share data) |
|||||||||||||||||||
|
Quarter Ended |
|
Year Ended |
||||||||||||||||
|
October 3,
|
|
September 28,
|
|
October 3,
|
|
September 28,
|
||||||||||||
Revenues |
$ |
14,707 |
|
|
|
$ |
19,118 |
|
|
|
$ |
65,388 |
|
|
|
$ |
69,607 |
|
|
Costs and expenses |
(15,160 |
) |
|
|
(16,844 |
) |
|
|
(61,594 |
) |
|
|
(57,777 |
) |
|
||||
Restructuring and impairment charges |
(393 |
) |
|
|
(314 |
) |
|
|
(5,735 |
) |
|
|
(1,183 |
) |
|
||||
Other income (expense), net |
656 |
|
|
|
(483 |
) |
|
|
1,038 |
|
|
|
4,357 |
|
|
||||
Interest expense, net |
(496 |
) |
|
|
(361 |
) |
|
|
(1,491 |
) |
|
|
(978 |
) |
|
||||
Equity in the income (loss) of investees |
106 |
|
|
|
131 |
|
|
|
651 |
|
|
|
(103 |
) |
|
||||
Income (loss) from continuing operations before income taxes |
(580 |
) |
|
|
1,247 |
|
|
|
(1,743 |
) |
|
|
13,923 |
|
|
||||
Income taxes on continuing operations |
(49 |
) |
|
|
(341 |
) |
|
|
(699 |
) |
|
|
(3,026 |
) |
|
||||
Net income (loss) from continuing operations |
(629 |
) |
|
|
906 |
|
|
|
(2,442 |
) |
|
|
10,897 |
|
|
||||
Income (loss) from discontinued operations, net of income tax benefit (expense) of |
— |
|
|
|
299 |
|
|
|
(32 |
) |
|
|
687 |
|
|
||||
Net income (loss) |
(629 |
) |
|
|
1,205 |
|
|
|
(2,474 |
) |
|
|
11,584 |
|
|
||||
Net income from continuing operations attributable to noncontrolling and redeemable noncontrolling interests |
(81 |
) |
|
|
(129 |
) |
|
|
(390 |
) |
|
|
(472 |
) |
|
||||
Net income from discontinued operations attributable to noncontrolling interests |
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
(58 |
) |
|
||||
Net income attributable to The Walt Disney Company (Disney) |
$ |
(710 |
) |
|
|
$ |
1,054 |
|
|
|
$ |
(2,864 |
) |
|
|
$ |
11,054 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share attributable to Disney(1): |
|
|
|
|
|
|
|
||||||||||||
Diluted |
|
|
|
|
|
|
|
||||||||||||
Continuing operations |
$ |
(0.39 |
) |
|
|
$ |
0.43 |
|
|
|
$ |
(1.57 |
) |
|
|
$ |
6.26 |
|
|
Discontinued operations |
— |
|
|
|
0.15 |
|
|
|
(0.02 |
) |
|
|
0.38 |
|
|
||||
|
$ |
(0.39 |
) |
|
|
$ |
0.58 |
|
|
|
$ |
(1.58 |
) |
|
|
$ |
6.64 |
|
|
Basic |
|
|
|
|
|
|
|
||||||||||||
Continuing operations |
$ |
(0.39 |
) |
|
|
$ |
0.43 |
|
|
|
$ |
(1.57 |
) |
|
|
$ |
6.30 |
|
|
Discontinued operations |
— |
|
|
|
0.15 |
|
|
|
(0.02 |
) |
|
|
0.38 |
|
|
||||
|
$ |
(0.39 |
) |
|
|
$ |
0.58 |
|
|
|
$ |
(1.58 |
) |
|
|
$ |
6.68 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average number of common and common equivalent shares outstanding: |
|
|
|
|
|
|
|
||||||||||||
Diluted |
1,809 |
|
|
|
1,816 |
|
|
|
1,808 |
|
|
|
1,666 |
|
|
||||
Basic |
1,809 |
|
|
|
1,804 |
|
|
|
1,808 |
|
|
|
1,656 |
|
|
||||
(1) |
Total may not equal the sum of the column due to rounding. |
THE WALT DISNEY COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited; in millions, except per share data) |
|||||||||
|
October 3,
|
|
September 28,
|
||||||
ASSETS |
|
|
|
||||||
Current assets |
|
|
|
||||||
Cash and cash equivalents |
$ |
17,914 |
|
|
|
$ |
5,418 |
|
|
Receivables |
12,708 |
|
|
|
15,481 |
|
|
||
Inventories |
1,583 |
|
|
|
1,649 |
|
|
||
Licensed content costs and advances |
2,171 |
|
|
|
4,597 |
|
|
||
Other current assets |
875 |
|
|
|
979 |
|
|
||
Total current assets |
35,251 |
|
|
|
28,124 |
|
|
||
Produced and licensed content costs |
25,022 |
|
|
|
22,810 |
|
|
||
Investments |
3,903 |
|
|
|
3,224 |
|
|
||
Parks, resorts and other property |
|
|
|
||||||
Attractions, buildings and equipment |
62,111 |
|
|
|
58,589 |
|
|
||
Accumulated depreciation |
(35,517 |
) |
|
|
(32,415 |
) |
|
||
|
26,594 |
|
|
|
26,174 |
|
|
||
Projects in progress |
4,449 |
|
|
|
4,264 |
|
|
||
Land |
1,035 |
|
|
|
1,165 |
|
|
||
|
32,078 |
|
|
|
31,603 |
|
|
||
Intangible assets, net |
19,173 |
|
|
|
23,215 |
|
|
||
Goodwill |
77,689 |
|
|
|
80,293 |
|
|
||
Other assets |
8,433 |
|
|
|
4,715 |
|
|
||
Total assets |
$ |
201,549 |
|
|
|
$ |
193,984 |
|
|
LIABILITIES AND EQUITY |
|
|
|
||||||
Current liabilities |
|
|
|
||||||
Accounts payable and other accrued liabilities |
$ |
16,801 |
|
|
|
$ |
17,762 |
|
|
Current portion of borrowings |
5,711 |
|
|
|
8,857 |
|
|
||
Deferred revenue and other |
4,116 |
|
|
|
4,722 |
|
|
||
Total current liabilities |
26,628 |
|
|
|
31,341 |
|
|
||
Borrowings |
52,917 |
|
|
|
38,129 |
|
|
||
Deferred income taxes |
7,288 |
|
|
|
7,902 |
|
|
||
Other long-term liabilities |
17,204 |
|
|
|
13,760 |
|
|
||
Commitments and contingencies |
|
|
|
||||||
Redeemable noncontrolling interests |
9,249 |
|
|
|
8,963 |
|
|
||
Equity |
|
|
|
||||||
Preferred stock |
— |
|
|
|
— |
|
|
||
Common stock, |
54,497 |
|
|
|
53,907 |
|
|
||
Retained earnings |
38,315 |
|
|
|
42,494 |
|
|
||
Accumulated other comprehensive loss |
(8,322 |
) |
|
|
(6,617 |
) |
|
||
Treasury stock, at cost, 19 million shares |
(907 |
) |
|
|
(907 |
) |
|
||
Total Disney Shareholders’ equity |
83,583 |
|
|
|
88,877 |
|
|
||
Noncontrolling interests |
4,680 |
|
|
|
5,012 |
|
|
||
Total equity |
88,263 |
|
|
|
93,889 |
|
|
||
Total liabilities and equity |
$ |
201,549 |
|
|
|
$ |
193,984 |
|
|
THE WALT DISNEY COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited; in millions) |
|||||||||
|
Year Ended |
||||||||
|
October 3,
|
|
September 28,
|
||||||
OPERATING ACTIVITIES |
|
|
|
||||||
Net income (loss) from continuing operations |
$ |
(2,442 |
) |
|
|
$ |
10,897 |
|
|
Depreciation and amortization |
5,345 |
|
|
|
4,167 |
|
|
||
Goodwill and intangible asset impairments |
4,953 |
|
|
|
— |
|
|
||
Net gain on acquisition and investments |
(920 |
) |
|
|
(4,733 |
) |
|
||
Deferred income taxes |
(392 |
) |
|
|
117 |
|
|
||
Equity in the (income) loss of investees |
(651 |
) |
|
|
103 |
|
|
||
Cash distributions received from equity investees |
774 |
|
|
|
754 |
|
|
||
Net change in produced and licensed content costs and advances |
397 |
|
|
|
(542 |
) |
|
||
Net change in operating lease right of use assets / liabilities |
31 |
|
|
|
— |
|
|
||
Equity-based compensation |
525 |
|
|
|
711 |
|
|
||
Other |
641 |
|
|
|
154 |
|
|
||
Changes in operating assets and liabilities, net of business acquisitions: |
|
|
|
||||||
Receivables |
1,943 |
|
|
|
55 |
|
|
||
Inventories |
14 |
|
|
|
(223 |
) |
|
||
Other assets |
(157 |
) |
|
|
932 |
|
|
||
Accounts payable and other liabilities |
(2,293 |
) |
|
|
191 |
|
|
||
Income taxes |
(152 |
) |
|
|
(6,599 |
) |
|
||
Cash provided by operations - continuing operations |
7,616 |
|
|
|
5,984 |
|
|
||
|
|
|
|
||||||
INVESTING ACTIVITIES |
|
|
|
||||||
Investments in parks, resorts and other property |
(4,022 |
) |
|
|
(4,876 |
) |
|
||
Acquisitions |
— |
|
|
|
(9,901 |
) |
|
||
Other |
172 |
|
|
|
(319 |
) |
|
||
Cash used in investing activities - continuing operations |
(3,850 |
) |
|
|
(15,096 |
) |
|
||
|
|
|
|
||||||
FINANCING ACTIVITIES |
|
|
|
||||||
Commercial paper borrowings, net |
(3,354 |
) |
|
|
4,318 |
|
|
||
Borrowings |
18,120 |
|
|
|
38,240 |
|
|
||
Reduction of borrowings |
(3,533 |
) |
|
|
(38,881 |
) |
|
||
Dividends |
(1,587 |
) |
|
|
(2,895 |
) |
|
||
Proceeds from exercise of stock options |
305 |
|
|
|
318 |
|
|
||
Contributions from / sales of noncontrolling interests |
94 |
|
|
|
737 |
|
|
||
Acquisition of noncontrolling and redeemable noncontrolling interests |
— |
|
|
|
(1,430 |
) |
|
||
Other |
(1,565 |
) |
|
|
(871 |
) |
|
||
Cash provided by financing activities - continuing operations |
8,480 |
|
|
|
(464 |
) |
|
||
|
|
|
|
||||||
CASH FLOWS FROM DISCONTINUED OPERATIONS |
|
|
|
||||||
Cash provided by operations - discontinued operations |
2 |
|
|
|
622 |
|
|
||
Cash provided by investing activities - discontinued operations |
213 |
|
|
|
10,978 |
|
|
||
Cash used in financing activities - discontinued operations |
— |
|
|
|
(626 |
) |
|
||
Cash provided by discontinued operations |
215 |
|
|
|
10,974 |
|
|
||
|
|
|
|
||||||
Impact of exchange rates on cash, cash equivalents and restricted cash |
38 |
|
|
|
(98 |
) |
|
||
|
|
|
|
||||||
Change in cash, cash equivalents and restricted cash |
12,499 |
|
|
|
1,300 |
|
|
||
Cash, cash equivalents and restricted cash, beginning of period |
5,455 |
|
|
|
4,155 |
|
|
||
Cash, cash equivalents and restricted cash, end of period |
$ |
17,954 |
|
|
|
$ |
5,455 |
|
|
